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Episode 0029

Summary

The audio features a conversation between a father and son, Johnny, discussing Johnny's request to borrow $30,000 for market investment. Johnny expresses optimism, viewing the economic downturn as an opportunity, particularly in emerging markets like China. The father, however, is cautious, citing market instability, recent layoffs, and currency devaluation in said markets. Despite his father's reservations, Johnny remains determined and decides to ask his mother for the money instead.

00:00 00:00

Transcript (Click timestamp to jump)

00:09 Speaker 2

Dad, I'd like to borrow some money.

00:11 Speaker 1

Uh, sure Johnny, how much do you need? Five bucks?

00:14 Speaker 2

Come on, Dad. I need 30,000. I want to get into the market. You know, I'm tired of hearing all this news about the economic downturn, the inevitable recession, people stuffing their money in their mattresses. I look at this as an opportunity. This is a chance for me to get a jump start on building my nest egg.

00:28 Speaker 1

I don't know about that. With all the uncertainty in the markets right now, it'd be a very unwise decision to invest. I don't know if you're aware, son, but there has been a lot of turmoil in the markets recently. And there've already been half a million layoffs in the last few months, and we have no idea how the proposed stimulus package will impact upon the economy. There's just too much instability.

00:49 Speaker 1

I just wouldn't feel comfortable investing in this climate.

00:52 Speaker 2

But look at it this way. Every challenge is an opportunity. Anyway, I'm not talking about investing in the domestic market. There are emerging markets that promise great returns. Look at China, for example. They have 1.4 billion people. Half a billion of whom have recently entered the middle class. Here alone, the aggregate demand for consumer goods represents an amazing wealth-generating opportunity.

01:12 Speaker 1

Oh, come on, son, you're looking at this too naively. The Chinese market has exhibited a great deal of instability, and their currency has been devalued by almost a whole percentage point.

01:21 Speaker 2

Fine then. If that's the way you feel, so be it. But you're losing out on a great opportunity here. I'm going to hit up mom for the cash.